What are the limitations of SNTC — what assets can it not hold?

Limitations of CPF Nomination (SNTC) on Asset Holding

The CPF Nomination (SNTC) provides instructions for the distribution of CPF monies upon death, but it has specific limitations regarding which assets it can cover. Crucially, a CPF nomination overrides both a Will and a Trust regarding the nominated CPF funds (CPF Board guidance).

Assets NOT Covered by CPF Nomination:

• CPF Investment Scheme (CPFIS) Holdings: Any assets purchased under the CPFIS, even if the funds originated from CPF accounts, must be included in your Will for distribution. The CPF nomination does not cover these investments (CPF Board guidance).
• Designated Pension Scheme (DPS) with Great Eastern (GE): If you have a DPS policy with GE, you must nominate the beneficiary directly with GE, not through the CPF nomination form.
• Property Purchased Using CPF: Real estate purchased wholly or partially using CPF funds is governed by your Will or the laws of intestacy, not the CPF nomination. This applies even if you pledge the property for withdrawal at age 55.

Practical Implications:

• If you have funds invested in shares or unit trusts via CPFIS, you need a Will to direct who receives those specific assets upon your passing. The cash balance in your OA, SA, or RA (before age 55 closure) or RA (after age 55) is covered by the SNTC.
• For Singaporeans, the CPF nomination is powerful but only covers the cash balances in the OA, SA, MA, and RA. For comprehensive estate planning, a Will is necessary to cover non-nominated assets like property and CPFIS holdings.

Note on Changes: The SA closes for those aged 55 and above from January 2025, meaning future contributions for this age group go to the RA/OA, but the nomination rules for distribution upon death remain consistent for the resulting balances.